High Tide: From Unit 61398 to Hollywood Unnerved

A roundup of corruption-related news from Dow Jones and other sources. You can also receive a weekly newsletter version of Corruption Currents here.

Bribery:

Mike Lucas

Despite no public sign of the scope of U.S. authorities’ industry sweep of Hollywood’s dealings with China, the industry has been unnerved by the allegations. The U.S. probe comes amid exploding growth in China’s film industry. (NY Times, CNN)

Why does India needFinmeccanica SpA? Italy’s view of the scandal is here. The Finmeccanica chairman formally resigned last week in the wake of his arrest on bribery allegations. Meanwhile, AgustaWestland, the unit said to have committed the bribery, will deny the allegations. India’s defense minister took no action on the case for months. (WSJ India Real Time, WSJ India Real Time, Reuters, Guardian, Times of India)

Corruption probes at three major companies have hurt corporate Italy’s image with investors and revived memories of the bad old days of the 1990s just a week ahead of a major election. The scandals are boosting an anti-establishment party’s image. Why is fighting corruption in Italy an uphill battle? (Reuters, Reuters, Transparency International)

The FCPA Blog finds at least seven officials in Latvia being prosecuted in the Daimler case and says Goodyear instituted changes in the wake of a corruption allegation in Africa. Tom Fox runs a guest post warning those seeking business in Italy to beef up their FCPA compliance and has advice for internally advertising FCPA programs. The FCPAProfessor gives an overview of how presidents through history have seen the FCPA and delves into an old case for new lessons. Thebriberyact.com responds to a consultation and maintains its position on self-reporting. The FCPAmericas blog explains where FCPA compliance should fit within an organization.

The French president assured India no corruption occurred in a deal regarding fighter jet Rafale. (DNA India)

Cybercrime:

A study by Mandiant, an American computer security firm identified a building on the outskirts of Shanghai as the headquarters of P.L.A. Unit 61398, where U.S. officials confirming Mandiant’s findings say an overwhelming percentage of the cyber attacks on American corporations, organizations and government agencies originated over the past several years. China dismissed the allegations as groundless. Chinese cyber crime is a top concern of U.S. experts. A BBC reporter was detained while investigating the building. Photos and further detail is here. More here. (NY Times, AP, Reuters, Fast Company, Pew, BBC, Quartz, Washington Post)

A client alert from Sutherland explains new U.S. cybersecurity regulations.

The Philippines hopes to avoid being blacklisted by the FATF after its president signed a new anti-money laundering law. (AFP)

A Bulgarian court sentenced a money-laundering convict to more than seven years in jail. (FOCUS, Reuters)

Australian police warned of “money mules” as 20 people were charged in a card-skimming operation. (Courier-Mail)

Sanctions:

The list of those removed by the EU from its Zimbabwe blacklist is out. Women there are easy prey for corrupt politicians. Global Witness welcomed the EU decision to keep sanctions on the country’s diamond trade. A look at Zimbabwe’s diamond market is here. (The Africa Report, Transparency International, news release, Guardian)

Major global powers plan to offer to ease sanctions barring gold and other precious metals trade with Iran if Tehran takes steps to shut down its newly expanded Fordow uranium enrichment plant. Iran scolded world powers over the offer, and a senior Iranian lawmaker said the country will never close Fordow. (Reuters, Reuters, Reuters)

A client alert from Sheppard Mullin explains the latest U.S. sanctions on Iran.

Pakistan wants to renegotiate gas prices on an Iran-Pakistan pipeline after Washington warned Islamabad that it’s at risk of sanctions. (Dawn)

An aide to Iran’s supreme leader said Tehran will avenge the death of a top Revolutionary Guard official who was on a U.S. sanctions list. (AP, Reuters)

Some Chinese officials are souring on the idea of being Pyongyang’s best friend. North Korea threatened “final destruction” to its neighbor to the south. (NY Times, Reuters)

The EU, while extending the Syrian arms embargo, allowed for unspecified non-lethal aid to be exported into the country. As the conflict drags on, U.S. President Barack Obama could revisit his opposition to arming rebels. More here. Finland intercepted a shipment of parts meant for Syrian tanks. (AP, NY Times, NPR, Bloomberg)

Bulgaria urged European governments to take a harder line on Hezbollah, which the U.S. lists as a foreign terror organization. (Wall Street Journal, Reuters)

Whistleblowers:

A court in Moscow postponed a pre-trial hearing in the case against the late Russian lawyer Sergei Magnitsky. Are posthumous trials illegal? (BBC, Financial Times)

General Anti-Corruption:

The Justice Department is building a new model for prosecuting big banks after a raft of criticism. (Dealbook)

The Coalition Avenir Quebec party called for an independent anti-corruption watchdog in Quebec. (Globe and Mail)

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Corruption Currents, The Wall Street Journal’s corruption blog, digs into the ever-present and ever-changing world of corporate corruption. It is a source of news, analysis and commentary for those who earn a living by finding corruption or by avoiding it. Corruption Currents is written by Christopher. M. Matthews and Sam Rubenfeld and edited by Nick Elliott.

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